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Is Ford Entering Extreme Truck Market?Last Feb. Extreme Truck News asked Ford President Mark Fields if they had any plans to compete with GM/Monroe Truck luxury pickup conversions of medium duty trucks with a conversion based on the F-650. Frankly, he look surprised when we told him that GM sold $70 million worth of extreme pickups and had highlighted them at the Detroit and Chicago auto shows.
At the recent SEMA show in Las Vegas, perhaps Ford was dipping a toe into the market with an outrageous F-650 conversion by DeBerti Design of Bakersfield, California and Truck Customs by Chris. The F-650 features six-wheel drive, seats six, has six video screens (for the Sony TV, dvd and PSiii) and even six doors. I guess that makes it a 6X6X6X6. The front two doors scissors a la Lamborghini and the rear doors are gullwings. It rides onan Air Ride Technologies air suspension, and sports a 330-hp Cat diesel with an Allison automatic transmission. There was no announcement if Ford will make this a dealer package like GM's Monroe Truck Equipment's Kodiak/Topkick conversion. International's CXT Outsells Maybach
As International
continues its unlikely success selling high dollar image vehicles to wealthy business
owners, the CXT pickup truck is now outselling Mercedes Benz ultra-luxury Maybach in
North America. Melissa Gauger, spokesperson for International Truck & Engine
Corporation says that overall sales of the $120,000 CXT have reached about 230 units, with
over 200 delivered in 2005. Mercedes Benz reports selling 144 Maybachs in |
International Announces New RXT Tow Body
Since the XT family was announced, a common question for International was when they were going to make a version for fifth-wheelers. International has announced that the RXT will soon be available in a tow body format as the RXT Hauler.
It has 14.75 tons of towing capacity, 310 horsepower and a remarkable 950 lb. of torque carry the load effortlessly in any driving condition. International says that "with its jaw-dropping styling and interior amenities, you might even forget you're using it for work", but somehow we think that not many folks are going to make this a working truck since it's pretty much designed to haul travel trailers. Exterior features include: 4x2 Crew Cab; 9' tow bed with storage compartments; bright-finish heated mirrors; keyless entry; air horn; polished chrome bumpers with front aero effects; side custom skirts. Interior trim includes: embroidered custom floor mats; leather-wrapped tilt steering wheel; ivory-faced sport gauges; center floor console; metallic silver interior accents; padded full-length arm rests; AM/FM stereo & CD player; A/C
CXTs Big Baby Brothers RXT & MXT Production StartsWith the CXT selling profitably (to the tune of $25,000,000 or so in sales in 2005), International is expanding the XT family with the slightly smaller RXT, and sporty MXT based on their 4000 series medium duty trucks.
The
RXT went into production at Internationals
The MXT is targeted to a more sporting audience, with a lower stance and 7-foot low side pickup bed. It is designed as a 4X4 crew cab, with a premium interior and four racing seats, and is powered by Internationals VT275 V6 diesel, with 230 HP and 460 lb. ft. of torque. Like the RXT, the MXT has disc brakes on all four wheels, and has a slightly lower capacity, 18,000 lbs. GVWR.
Click Here for International CXT, RXT & MXT Specifications
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Editorial: A New Niche EmergesWhen International introduced the CXT, the world's largest production pickup truck, it was seen by many as a publicity stunt. The fact that Ashton Kutcher bought one, only to discover that it was a very big truck (and not very popular with the anti-SUV crowd in Hollywood) and then sell it at auction further reinforced the publicity angle. However outrageous the CXT may be, and whatever hype may accompany it, the fact remains that it has been a very profitable project for International. In a little over a year, they've sold over 200 CXTs. At $120,000 per, that works out to more than $27,000,000. $27 million in revenue with no platform expenditures and tons of free publicity. No wonder International has expanded the concept with the slightly smaller (and cheaper, ~$80K) RXT and now the sporty member of the XT family, the MXT - that is, if a vehicle with a gross vehicle weight of over 18,000 lbs. can be considered sporty. Meanwhile, back in Detroit, somebody at General Motors noticed that they sold over $70,000,000 worth of extreme trucks thanks to Monroe Truck Equipment's Kodiak Pickup (also available in the GMC Topkick sibling). Monroe sold over 1000 C4500 and C5500 luxury conversions through GM dealers in '05 and the General has taken notice. The Kodiak/Topkick was highlighted at the 2006 North American International Auto Show in Detroit. GM's media team gave it almost as much publicity as the four new vehicles and two concepts revealed at their home show. GM also highlighted a Monroe equipped Kodiak and Topkick at the '06 Chicago show. Ordinarily, 1200 units isn't much of a niche market in the auto industry, but when the units are retailing near and above six-figures, those small production numbers add up to big bucks. Between International's XT family, and Monroe's C4500/5500 conversions, the extreme truck market is a $100,000,000 niche. And that doesn't include extreme trucks from smaller conversion companies, like Overbilt Trucks' Ford F-650 based conversion. The vehicles are built on highly amortized platforms so they're very profitable. I believe that the extreme truck market is poised to make significant growth. In many ways it reminds me of the ultra-luxury class of automobiles, with which it shares a customer base. While the dot com boom was still on the upswing, there was a frenzy of activity in the ultra-luxury market. BMW and Volkswagen fought over Rolls-Royce and Bentley. Mercedes revived the Maybach marrque. Aston Martin was acquired by Ford to be the jewel in its Premium Auto Group. Then the dot com boom busted. Who was going to buy all those new ultra-luxury cars? The market hitherto had been about 3000 units worldwide annually. Then something surprising happened. With the possible exception of Maybach (and M-B insists that the Maybach has already turned a profit), all those six figure cars started to sell. The manufacturers realized that they weren't competing with each other but rather with yachts, private jets, and third homes. The 'near ultra luxury' market now is crowded and the order books are full. Bentley, Aston Martin, Ferrari, Ford (the GT), all have cars in the $100,000 to $150,000 range and all of them are selling to capacity. When an S-Class Mercedes Benz is six figures, a lot of options become apparent.
Right now the extreme truck market is about 1300 units, with a retail value in the neighborhood of $100 million. The major players are of course General Motors and now International. If the International RXT and MXT do as well as the CXT, that would push the figure closer to 2000. Dodge's Mega Ram isn't properly an extreme truck because it's built on a standard pickup platform, but it appeals to the lower end of the same market. Ford, slammed by environmentalists for the Super Duty based Excursion SUV, might be reluctant to enter the extreme truck market, but there are already conversion companies like Overbilt building luxury crew cab and double cab conversions of the Ford F-650. I suspect that when someone in the glasshouse in Dearborn sees figures like $100 million, Ford's entry into the extreme truck market will soon follow. While extreme truck may never become a billion dollar market, I can easily see the niche reaching the $500 million mark within 5 years. Expect to see both small and large companies go after some of that money. |
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Stories:Editorial: A New Niche Emerges Is Ford Entering Extreme Truck Market? International's CXT Outsells Maybach CXTs Big Baby Brothers RXT & MXT Production Starts International Announces New RXT Tow Body Contact Us |
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